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Marketing Plan for “Kansas City, Here I come” MKTG 310 A 09-01 J. WaymanNovember 19, 2009 Executive Summary for Kansas City, Here I come Our company name is “Kansas City, Here I come”. We are a localized travel/event organization. We provide concierge travel service to the Kansas City Metro area. We specialize in event/occasion accommodations. These include airline, hotel, car rentals, concert and sporting event tickets, as well as arrangements for family/class reunions, weddings groups or couples weekend getaways. Our goals include booking 100 trips this winter, make a 10% profit and lead the industry in the Kansas City area. We can achieve these goals with the right planning and management. We look forward to accomplishment of these goals and to providing this service to our customers. Rick Winn Katelyn GriffithDrew Dawson Table of Contents Pg. 1 Executive Summary Pg. 2 Table of Contents Pg. 3 Market Description & Product Review Pg. 4 Competitive Review & Distribution Review Pg. 5 SWOT Analysis & Objective/Issues Pg. 6 Marketing Strategy: • Positioning • Market Research • Marketing Organization Pg. 7 Marketing Strategy • Product • Price • Distribution • Communications Strategy Pg. 8 Action Program • Budgets• Controls Current Marketing Situation Analysis Market Description • Professionals • Midwesterners • Married, Unmarried Couples • Students • Special Occasions• Enthusiastic Sports/Entertainment Fans CHART GOES HERE This market was chosen because we want to maintain a high quality service, but also maintain affordability. By choosing these smaller markets, we have the opportunity to tailor our offerings to specific individuals, events and groups Our service is better than the competition because we can provide the specific experience the customer is looking for. The competition offers plane tickets, hotel reservations and car rentals. We take this further by providing event tickets, as well. Product Review • We provide convenience• We provide value Competitive Review 1) Orbitz a) Position - a leading global online travel company that uses innovative technology to enable leisure and business travelers to research, plan and book a broad range of travel products b) Strategy – include multiple product lines internet and television advertising 2) Expedia a) Position – a leading global online travel company that uses technology and multiple business relationships to allow its leisure and business customers a range of products and services b) Strategy – uses multiple brands and product lines Internet, televisions and radio advertising 3) Priceline a) Position – a leading global online travel company that uses technology and customer service to build product value b) Strategy – uses product guarantees (price drop protection) popular television ad campaign Iphone app Distribution Review These types of products are almost exclusively offered on-line. This is what makes them so convenient. Recent trends indicate people will still spend money on travel, if they feel the value has been enhanced. People will spend, if they feel they are getting more for less. We plan to provide our service on-line. There will be telephone customer service when needed. SWOT Analysis Strengths • Relationships with local business owners Weaknesses • Publicity Opportunities • Big upcoming events/concerts o We will push advertising catered to these events/segments • People who want to travel want big value o We will create value through business relationships that can be passed on to consumer • Smaller travel budgets means people are staying closer to home o We will save money by advertising regionally Threats • Winter Weather o We will contact “airport shuttle” services to provide regional transportation • Increased cost of accommodations o We will work closely with our partners to help them keep their costs low • Our regional market will be slow to grow o We will spend more money early to “get the word out”, then rely on our customer service to help spread brand recognition Objectives and Issues • We want to make a 10% profit in our first year. Issue: We need to find resources that allow us to turn a profit. • Book 100 trips this winter. Issue: Our company is still new and does not have any clients, and advertising is expensive. • We want to be the leading travel agency for the Kansas City metropolitan area.Issue: The competition is established and already has control on the market. Marketing Strategy PositioningIn order to position our services properly we must make sure that stay true to our target market and appeal to their needs. In order to meet the needs of these target segments we will take different approaches to each. For the married couples and professionals the positioning in this market we want to take is a service that can offer a no-hassle, relaxing weekend getaway, while for students and the sports fans our position would be to take a quick package deal approach where it would be made possible for them to attend all the different events they desire. Our positioning will become a unique one standing out against all other competition due to the extent of our services that only our company offers while all competition offers only a small part of one of our service. Our wide variety of services we provide will allow for an easily planned, worry free weekend vacation for all of our segments. Marketing Research • Find if local amenities are willing to offer deals with our firm even if via contract • Events in the area that appeal to our target markets• Prices and specials of local hotels, airlines, and car rental agencies Marketing OrganizationOur company will be organized by our customers. Since each of our customer segments will be demanding different services from our company, we must segment within our company in order to meet the demands from each of these segments. Product For the product mix of the services our company is providing our main strategy is to build strong service variability to show our quality outshines all the competition. Our second strategy being a company that provides a service is to insure internal and interactive marketing is used to make sure our employees are motivated to work as a team and that team work increases the quality of the customer’s interaction with the employees and company as a whole. Our last major strategic focus is to manage our service quality, the main purpose of our company is to make things easier for our customers and to keep their happiness in mind at all times. If we do not provide the quality of services to our customers that they expect we will be unsuccessful. Price The approach our company is taking with pricing our services is as a whole, we will be able to provide a package deal making our services much more appealing to consumers. The company will put together a “package” including all the necessities for their complete vacation of their choice including things such as hotels, car rentals, sporting tickets and more, when these packages are purchased our pricing will be well below the price of purchasing each item individually. Distribution The services provided by our company will be limited to planning packages within Kansas City as to get our company off the ground and build up a strong brand before taking on too much. As we become profitable and hold a stable demand we may extend our company to other cities throughout the United States where we see a solid demand for our services. Marketing Communications StrategyThe communications strategy that is going to be our company’s main focus is going to be direct marketing. Since our target market’s are a bit particular including sports fans and couples wanting a weekend getaway it would be in our best interest to focus a majority of our promotion directly to those individuals. The second strategy the company will be focusing on will be personal selling; we want to make sure that we build good relationships with our customers so the next time they decide they want to get away they automatically think of us because that relationship is there. Action Program • Over the next six months our company will need to put most of the company’s resources into advertising and promoting the service we are providing. We need to allocate money to radio advertisements. A radio advertisement will be the easiest way to get to our future clientele because it will be easier to explain the benefit of planning a trip through us. We will be able to show that we can take all the work of planning a tip away and still provide a good deal. We will also need to make connections with ticket offices and hotels to get discount for mass booking for events and rooms. This will be our biggest time consumer of starting our business. We will also need to get a professional web designer to develop a webpage that allows customers to book their vacations. Budget • The starting budget for our company does not have to be large. The initial cost for the business is only the advertisements to promote the business and a website that customers can book their vacations on. A two minute radio commercial will provide sufficient time for showing the benefit of using our company as a travel agency. A radio advertisement of this size will cost around a thousand dollars. If we use a radio station that has sister stations such as the Cumulus Stations, we can span over all their stations rather than if we used an independent station. For another thousand dollars the company can have a professional build a webpage that will allow customers to book their vacations. The company will also need to front for tickets and booking so we can provide a deal for our customers as well as look to turn a profit. By buying tickets in mass quantities we will be able to receive discounts on some attractions. This will be needed to help us turn larger profits and not have to raise the prices for the cost of tickets. Since we will be starting with a small client base, we will only need around four thousand dollars to be able to book and purchase tickets in advance. Total needed to start this business will be roughly around five thousand dollars. • Our sales will start out being small the first year we are in business. Since we are starting a business with many alternatives, we have to show we have a completive advantage over the competition. How we will show that we have a wealth of knowledge when it comes to Kansas City and can provide our customers with a great and remember able experience. It will take some time to build clientele so our first year I project that we will show to break even. For a new starting small business this is a common thing due to the initial cost of starting the business and having a small client base. In two years I would like to see the company turn a five thousand dollar profit and in three years a ten thousand. This business will not produce enough profit at first to create sufficient salaries, but it will be a decent supplement to other income. The company also will not require much work. The only work to be done is finding events and prices to update the packages on the website. • The three major things our company will have to spend money on are advertisement, website, and pre-booking and tickets. Advertising is going to be our most important expense because without it, customers will not know about our service. The website will also help some with advertising, but will also serve as a way to obtain our services. The tickets and pre-booking will be a cost that is great but will be returned by the revenue from customer’s vacations after they are booked and paid for. Control• The companies clientele should double every year until we establish a strong prescience in the travel agency market. Latest activity Category:Browse